If your bank receives a checkable deposit of $20,000 cash, and the banking system makes loans totaling $60,000 . the maximum possible, then the money multiplier must be:
a. 2.
b. 2.5.
c. 3.
d. 3.5.
e. 4.
e
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Some policymakers claim that raising the minimum wage leads to higher employee morale and productivity. In this sense, an increased minimum wage would be operating like
A) an equilibrium real wage. B) an efficiency wage. C) a full employment wage. D) a sticky wage.
The Phillips curve shows the possible combinations of ________ and ________
a. potential output; the interest rate b. the interest rate; the unemployment rate c. the price level; real output demanded d. the inflation rate; the unemployment rate
One explanation given in the video for the fluctuations of an economy's real growth rate around its potential growth rate is:
A. that there are often shocks to the planned level of spending. B. that there are often shocks to the money supply. C. that the potential growth is inaccurately calculated. D. that there are often shocks to the key growth factors
Which of the following would cause the US dollar to increase in value compared to the Japanese yen?
(a) An increase in the money supply in the US (b) An increase in interest rates in the US (c) An increase in the US trade deficit with Japan (d) The US purchase of gold on the open market (e) The sale of $2 billion dollars worth of Japanese television sets to the US